Sue Lines (President) Share this | Hansard source

Thank you, Senator Ruston—and Senator Roberts? Thank you. I'll go to the second one. The question is that the opposition's second reading amendment on sheet 2274 be agreed to.

Opposition's circulated amendment

Omit all words after "That", substitute:

(a) the Senate notes that:

(i) the bill, as currently drafted, is not suitable for an industry like plantation forestry because the harvesting period for structural timbers used for buildings is between 30 to 50 years, and if passed this bill would damage the plantation forestry industry and prevent expansion significantly at time when a strong forestry industry is critical to relieving supply chain issues within the domestic construction industry and to our competitiveness internationally,

(ii) the third party debt test in the bill does not accommodate non-consolidated tax structures such as trusts, which are a common commercial vehicle, particularly in the property and infrastructure sector, and that in its current form the bill will impede the delivery of 150,000 new homes that could reduce rental costs for Australians, and

(iii) the bill, as currently drafted, favours industry superannuation funds over managed investment trusts, attribution managed investment trusts and corporate collective investment vehicles by exempting superannuation funds from the associate entity test, which is designed to determine whether an entity is subject to the thin capitalisation rules; and

(b) further consideration of the bill be postponed until the day after the Senate passes a resolution that it is of the opinion that each of the following conditions has been met:

(i) the Treasury has consulted with industry on the bill for a period of no less than three months and that consultation has appropriately considered:

(A) how the bill can be amended to account for the unique long-term nature of the plantation forestry sector, and

(B) how the third party debt test be amended to accommodate non-consolidated tax structures such as trusts to deliver more housing supply into the market, and

(ii) the Government has circulated amendments to the bill that either exempt similar funds from the associate entity test or removes the exemption for superannuation funds.

Question negatived.